NBS key policy rate raised to 5.25 pct

BELGRADE - The National Bank of Serbia (NBS) Executive Board decided on Thursday to raise the key policy rate by 25 bp to 5.25 pct.

In a statement, the NBS said the deposit and credit facility rates had been increased by the same amount - to 4.25 pct and 6.25 pct, respectively.  

"The NBS continues to tighten monetary conditions and contain the second-round effects of cost-push pressures on price growth through inflation expectations. It thus helps inflation in Serbia to strike a downward trajectory and return within the target tolerance band until the end of the projection horizon.

Today's hike is the tenth in a row - since April 2022, the rate has been raised by 425 bp in total," the central bank also said.